He has a monthly income of 2,000 dollars.

He cannot support his family on his monthly income.

His monthly income amounts to half a million yen.

It could be a quarterly income statement.

And this is an annual income statement.

let's do the accrual accounting income statement.

So it could be an annual income statement.

So this kind of the cash income statement,

It's the top line of the income statement.

Our monthly income has to cover food, rent, clothing, transportation, and so on.

So this right here you could view as our income statement.

And I won't go into all of the details of an income statement, but any income statement you look at will have this operating profit line.

And then also how the income statement relates to the balance sheet.

And your bottom line, that's the bottom line of the income statement.

And I'll show you how to do that on an income statement.

Monthly Statistics

Monthly Log

Monthly estimates

In this scenario, this is the income statement, at least as far as we get to the operating income line.

And here we'll literally just take whatever is reported from the income statement.

Those are usually the two types that you see, but sometimes, there's monthly or six month income statements.

In particular, you saw interest expense on Jason's business and not on Ben's income statement.

Monthly Traffic Limit Exceeded

And income statement tells us what happened over a period of time, what was the activity?

This is our income statement for month one on a Cash basis and a Accurual basis

Above this line right over here is the income statement, down here is the balance sheet.

I must have gotten 200 worth of value from someplace and that's what the income statement describes.

So I'm gonna start of, we're gonna focus on month 2 and what I've done is I've rewritten some of this accrual income statement down here so it really looks like a statement so this right here is the income statement for month 2 on an accrual basis.

Mother calculated her monthly expenses.

Attached is my monthly report.

Notify when monthly traffic exceeds

This is monthly interest rate.

And actually, in this video, we're going to see how the income statement relates to the balance sheet.

Now I say it's simplified because this is a very simplified income statement for each of these periods.

How much is the monthly rate?

My monthly wage is 300,000 yen.

My monthly salary is 300,000 yen.

I have a monthly puzzle calendar.

So this is your monthly payment.

statement

Statement

And we'll learn later the cash flow statement essentially reconciles the income statement with what happens with your actual cash account, or how things actually move within the balance sheet.

And then we're going to set p is equal to your monthly payment, your monthly mortgage payment.

This is the cash basis of accounting and this is the accrual, and let's just look at the income statement

In the next video, I'll try to reconcile what the Accrual income statement is telling us and the actual cash.